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Agrichemical Reduction Policy: Its Effect on Income and Income Distribution

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  • Rendleman, C. Matthew

Abstract

When farm chemical use is restricted, gross farm income rises, but net income may fall. A 10-sector applied general equilibrium model was used to arrive at this assessment. Compared are a chemical use tax, an input restriction on chemicals, and a farm sales restriction imposed on input suppliers. The tax and sales restrictions reduce net income because of rising costs, while the input restriction holds the potential for raising net farm income.

Suggested Citation

  • Rendleman, C. Matthew, 1991. "Agrichemical Reduction Policy: Its Effect on Income and Income Distribution," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(4), pages 1-5.
    • Handle: RePEc:ags:uersja:138227
    DOI: 10.22004/ag.econ.138227
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    References listed on IDEAS

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    1. McKenzie, G W & Pearce, I F, 1982. "Welfare Measurement-A Synthesis," American Economic Review, American Economic Association, vol. 72(4), pages 669-682, September.
    2. Knutson, Ronald D. & Taylor, C. Robert & Penson, John B., Jr. & Smith, Edward G., 1990. "Economic Impacts Of Reduced Chemical Use," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 5(4), pages 1-4.
    3. Hertel, Thomas W., 1990. "General Equilibrium Analysis of U.S. Agriculture: What Does It Contribute?," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-7.
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    Cited by:

    1. Fabrice Levert & Hervé Guyomard & Alexandre Gohin, 2003. "Impacts économiques d’une réduction des utilisations agricoles des engrais minéraux en France : une analyse en équilibre général," Économie et Prévision, Programme National Persée, vol. 157(1), pages 13-30.
    2. C. Rendleman & Kenneth Reinert & James Tobey, 1995. "Market-based systems for reducing chemical use in agriculture in the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 51-70, January.
    3. Senauer, Benjamin, 1993. "The Impact Of Reduced Agricultural Chemical Use On Food: A Review Of The Literature For The United States," Working Papers 14450, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Johnstone, Nick & Alavalapati, Janaki R.R., 1998. "The Distributional Effects of Environmental Tax Reform," Discussion Papers 24140, International Institute for Environment and Development, Environmental Economics Programme.

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    Keywords

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